Dollar under pressure as traders await U.S. loans data.
The dollar began the week under pressure on Monday, with traders betting it might have peaked along with U.S. interest rates while keeping a wary eye on looming inflation and loans data.
Sterling, up a fraction on the day and hovering at an 11-month high of $1.2652, was in particular focus ahead of an expected Bank of England rate increase on Thursday.
The pound has also been firming versus the euro, which was last at 87.36 pence, having dipped to 87.11 pence on Friday, its softest against the British currency this year.